Saudi Public Fund Takes a 5% Stake in Japan’s Nintendo

Saudi Arabia's Public Investment Fund has bet more deeply on video games by buying a 5% stake, worth about $3 billion, in Japanese company Nintendo Co. In its Japanese regulatory filing, PIF said that it held just over 5% of Nintendo as of March 31. It said that the stake was purely an investment, suggesting that it is not intended to try to influence the company’s strategy. 

Kyoto-based Nintendo won big at the start of the Covid-19 pandemic as people stayed home and the demand for video games increased rapidly. Recently, the company's results have been lagging, partly due to supply issues and because its flagship Switch console has been on the market for more than 5 years.

Nintendo said last week that Switch sales fell 20% in the financial year ended March 31 compared with a year earlier, and it predicts another drop this year due to supply chain issues.

Earlier this year, the fund also said it had established a subsidiary called Savvy Gaming Group to invest in the online gaming industry. As part of the announcement, Savvy Gaming Group said it has acquired an e-sports event and entertainment company as well as a digital gaming platform.